Jan 29, 2015 - Doing Differently. The type of district that I envision as we move forward embraces the current research
2015-2016 Budget Development Town Hall Meeting #2
DR. TIMOTHY MITCHELL RAPID CITY AREA SCHOOLS 1/29/15
Tonight Discuss Current Fiscal Situation Present a Updated Proposed Plan for reduction and reprioritizing of funds Answer Questions Gather Input
Budget Development
Doing Differently The type of district that I envision as we move forward embraces the current research as to what is the best way for leaders and teachers to act. They are also fiscally responsible and committed to our mission, vision and priorities as established by the community.
Talking Points
State Aid to Education
Talking Points The proposed increase to the per student allocation (PSA) being considered at the legislature is not enough to cover increased costs of operation and enhance compensation. The PSA is less for 2014-2015 ($4,781.14) then it was for 2011-2012 ($4,804.60).
Talking Points Since 2011-2012 school year the revenue the district has received for the General Fund has been flat. Enrollment has fluctuated up and down overtime which does not make for a consistent revenue stream.
Talking Points We have spent our General Fund Reserve. The current General Fund Budget is projected to spend $5.7 million dollars out of Reserve and would leave it at 9.6% of the General Fund Budget. It is recommended to be at 12%. We utilized General Fund Reserve for ongoing expenditures for the 2013-2014 and 2014-2015.
Talking Points Of the $5.7 million projected to be spent from reserve $3.7 million is ongoing and $2.0 million is one-time. This means we have a $3.7 million structural deficit. We need at least $3.7 million to balance and the additional reduction amount will be used to enhance compensation.
Talking Points We do not have the ability to increase revenue as other schools across the state. A number of unique factors that aide other districts are not available for the RCAS. If the opt-out was passed tomorrow, the dollars from it would not be available until the 2016-2017 Budget.
What are other schools doing? Increased Enrollment/Increased Assessed Evaluation Opt Out 2014-2015-46% 2015-2016-25% additional
Spending General Fund Reserve 2013-2014-71% 2014-2015-87% Capital Outlay Flexibility 2014-2015-65% Unique Revenue Sources: Other Revenue- EX: Impact Aid-Small School Factor
Spending Reduction Goals *Balance Revenue with Expenditures
*Create Long-Term Stability *Free up Resources for Compensation
*Find and Implement any and all areas of Reduction as possible
Final Decision Four Factors Guide Evaluation: Financial Benefit Impact on Student Achievement Political Feasibility Complexity of Implementation
Update Two proposals suggested are subject to negotiations and the School Board and I are concerned and understand the negative impact of dealing with early retirement and health insurance. Staff should not make decisions based upon misinformation and the unknown. Much will need to transpire as negotiations get underway. The plan is to as always negotiate in good faith and come up with solutions that are workable for both sides.
Timeline Town Hall Meetings: February 5-North Middle School 6:30 PM February 17-Board Action-Rapid City High School 5:30 PM
